BCG That sound you're hearing just may be The Boston Consulting Group revving up its Automotive practice. The firm is working for the U.S. Treasury on an initial public offering for General Motors, which is expected to be announced shortly. And while Xavier Mosquet, a senior partner, head of the Detroit office and global head of BCG's Automotive practice, can't reveal too many specifics, he says the GM IPO will be one of the automotive industry's biggest success stories to date. "This would be a very fast turnaround story," he says. "It would have been about 18 months to take the company from a bankruptcy situation to an IPO that will probably be worth more than $10 Billion."

For GM, the key priorities will be on sustaining the revenue growth and the price levels. "It's about having the right products and the right technology. Right now, their biggest priority is on its European turnaround," he says. Mosquet is betting on a similar success story at Chrysler. Between now and the end of the year, Chrysler will roll out about 10 new product offerings or product refreshes. The first step, he says, is the unveiling of the new 2011 Jeep Grand Cherokee, which has been well received by dealers and the public, he says.

The industry is also taking note. BCG and Mosquet were recently recognized by the Global M&A Network for the work in advising the U.S. Treasury Department on last year's Chapter 11 reorganization of GM and Chrysler.

Meanwhile, BCG shows no signs of hitting the brakes. Mosquet opened the Detroit office five years ago with just five people. It has grown to 35, and he suspects it'll continue to grow at 20 to 30 percent annually. Globally, the 500-consultant automotive practice will grow at nearly the same rate.

Another area fueling growth, he says, is the move toward electric and hybrid vehicles in the U.S. By 2020, BCG is forecasting 5 percent of the U.S. market will be electric vehicles, while an additional 20 percent will be hybrids.

—Joseph Kornik

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